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Novo Nordisk's operating profit decreased by 8% in Danish kroner and increased by 4% in local currencies in the first six months of 2018

Posted on: 08 Aug 18

Sales decreased by 5% in Danish kroner and increased by 4% in local currencies to DKK 54.3 billion.

Sales of Victoza® increased by 2% to DKK 11.7 billion (12% in local currencies).

Sales of Saxenda® increased by 35% to DKK 1.7 billion (50% in local currencies).

Sales of Tresiba® were unchanged at DKK 3.7 billion (increased by 11% in local currencies).

Sales of Xultophy® increased by 154% to DKK 720 million (165% in local currencies).

Sales in North America Operations decreased by 10% (unchanged in local currencies).

Sales in International Operations increased by 1% (8% in local currencies).

Sales within diabetes care and obesity decreased by 4% to DKK 45.6 billion (increased by 5% in local currencies). Sales within biopharmaceuticals decreased by 9% to DKK 8.7 billion (decreased by 1% in local currencies).

Operating profit decreased by 8% in Danish kroner and increased by 4% in local currencies to DKK 24.7 billion, reflecting the significant depreciation of the US dollar and related currencies versus the Danish krone.

In February 2018, Novo Nordisk launched Ozempic® in the USA, a new once-weekly GLP-1, and the initial feedback from prescribers and payers is positive and the formulary coverage for Ozempic® is progressing. The weekly new-tobrand prescription market share for Ozempic® has reached 14%.

During second quarter of 2018, Novo Nordisk announced the phase 3a results from four of the 10 clinical trials in the PIONEER programme with oral semaglutide, a new once-daily GLP-1 tablet for people with type 2 diabetes. The trials confirmed statistically significant reductions in both HbA1c and weight for oral semaglutide compared to empagliflozin, sitagliptin and Victoza®.

The Board of Directors has approved an interim dividend for 2018 of DKK 3.00 per share of DKK 0.20 to be paid in August 2018.

For 2018, sales growth is still expected to be 3-5% and operating profit growth is still expected to be 2-5%, both measured in local currencies. Sales growth and operating profit growth reported in Danish kroner are now expected to be 5 and 7 percentage points lower than in local currencies, respectively.

For 2019, formulary negotiations with pharmacy benefit managers and managed care organisations in the USA are progressing. Subject to the final outcome of these negotiations, average prices after rebates are expected to be lower compared with the levels in 2018, predominantly due to basal insulin pricing and changed Medicare Part D coverage gap legislation. The market access for Novo Nordisk's key products is expected to remain broadly unchanged compared to 2018.

Lars Fruergaard Jørgensen, president and CEO: "Sales growth in the first half of 2018 was driven by solid performance of our key innovative products: Victoza®, Tresiba®, Xultophy® and Saxenda®, and the launch of Ozempic® is off to a good start in North America. We are encouraged about the clinical trial results for oral semaglutide and we are looking forward to making the first oral GLP-1 treatment available for people with type 2 diabetes."

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